Hidden Bullish and Bitcoin Hidden Bearish Divergence Bitcoin Trading

Hidden divergence is used as a possible signal for a bitcoin trend continuation after the bitcoin price has retraced. It's a trading signal that the original bitcoin trend is resuming. This is best setup to trade because it's on same direction as that one of the continuing price trend.

Bitcoin Hidden Bullish Divergence

This setup happens when bitcoin price is making a higher low ( HL ), but the oscillator trading is displaying a lower low ( LL ). To remember these setups easily think of them as W-shapes on Chart patterns. It occurs when there's a retracement in an upward BTC/USD trend.

The example illustrated below illustrates screen shot of this btcusd crypto setup, from the image the bitcoin price made a higher low (HL) but the trading indicator made a lower low (LL), this portrays that there was a diverging trade signal between the bitcoin price & indicator. This signal illustrates that soon the btcusd cryptocurrency market up bitcoin trend is going to resume. In other terms it highlights this was just a retracement in an upward bitcoin trend.

Hidden Bullish Divergence in BTCUSD - Hidden Bearish Divergence in Bitcoin Trading

This confirms that a retracement move is complete and indicates underlying momentum of an upward cryptocurrency trend.

BTCUSD Hidden Bearish Divergence

This setup happens when bitcoin price is making a lower high (LH), but the oscillator trading is showing a higher high (HH). To remember these setups easily think of them as M-shapes on Chart patterns. It occurs when there's a retracement in a downward Bitcoin trend.

The example shown below illustrates screen shot of this bitcoin setup, from the image the bitcoin price made lower high (LH) but the indicator made a higher high (HH), this portrays that there was a divergence between the bitcoin price and the indicator. This portrays that soon the btcusd market down bitcoin trend is going to resume. In other terms it highlights this was just a retracement in a ==22==downwardsdownward trend.

Bitcoin Hidden Bearish Divergence Example in Bitcoin - Hidden Bullish Divergence in Bitcoin Trading

This confirms that a retracement move is complete & reflects under-lying momentum of a downwards cryptocurrency trend.

Other popular indicators used are Commodity Channel Index (Commodity Channel Index Indicator), Stochastic Oscillator, RSI & MACD. MACD and RSI are the best technical indicators.

NB: Hidden divergence pattern is the best type divergence pattern to trade because it gives a trading signal that is in the same direction with the current trend, thus the setup has a high risk to reward ratio. This setup provides for the best possible entry.

However, a bitcoin trader should combine this cryptocurrency trading setup with another indicator like the stochastic oscillator or moving average & buy when bitcoin is oversold, & sell when bitcoin is overbought.

Combining Together Hidden Divergence Pattern with Moving Average Cross over Strategy Method

A good indicator to combine these bitcoin trading set ups is the moving average indicator using the moving average crossover method. This will create a good strategy.

Hidden Bullish Divergence in BTCUSD - Hidden Bearish Divergence in BTCUSD Trading

Moving Average Cross-over Method

In this technique, once the trading signal is generated, a trader will then wait for the moving average crossover method to give a buy/sell cryptocurrency trading signal in the same trend direction, if there's a bullish divergence setup between the bitcoin price & technical indicator, wait for the moving average cross over strategy to give an up-ward cross over signal, while for a bearish diverging setup wait out for the moving average crossover method to give a downwards bearish crossover signal.

By combining this cryptocurrency signal with other technical indicators this way a trader will avoid whip-saws when it comes to trading this bitcoin signal.

Combining Together with Bitcoin Fibonacci Retracement Levels

For this exemplification we shall use an upward trend. We shall use the MACD.

Because the hidden divergence trade setup is just a price retracement in an up-ward bitcoin trend we can combine this cryptocurrency signal with the most liked retracement tool that is the Fibo retracement areas. The example illustrated below shows that when this cryptocurrency set up appeared on trading chart, bitcoin price had just hit the 38.2% level. When bitcoin price tested this point, this would have been a good level to set and open a buy order.

Bitcoin Trade Hidden Bullish Divergence on Upward Bitcoin Trend Combined with Fibonacci Retracement

Combining with Bitcoin Fibo Extension Levels

In the cryptocurrency trading example above once the buy bitcoin trade was placed, a btc/usd trader would then need to calculate where to set and place the take profit order for this trade. To do this a bitcoin trader would need to use the Bitcoin Fibo Expansion Levels.

The Fib extension was drawn like as shown & displayed on the btcusd chart such as displayed & illustrated ==22==and shown below.

Fibonacci Extension Levels Combined with Bitcoin Hidden Bullish Divergence - Hidden Bullish Divergence in Bitcoin Trading

For this exemplification there were three tp order areas:

Expansion Level 61.80% - 131 pips profit

Extension Level 100.00% - 212 pips profit

Extension Level 161.80% - 337 pips profit

From this trading strategy combined with Fib would have provided a good strategy with a good amount of trading profit set using these take profit order areas.

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